Pattie Lovett-Reid

Chief Financial Commentator, CTV

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Every year people say time and again their number one goal is to reduce debt.

According to CIBC, it has been the top financial goal for seven years running. With this in mind, consider trying to focus on one outstanding piece of debt each month. If you can, think of it like a bicycle wheel and each element of your financial life is represented by a spoke. What happens is that as you gain spokes on the wheel, or as you address your financial situation each month, you gain momentum and can't help but move forward financially. One of the best ways to get your financial wheels in motion is to pay off your outstanding debt. Interest costs are a drag on your financial plan. Time and compounding works wondering well for you when you are saving and can destroy a plan when you owe money.

Pay off the most expensive debt first. That would be the one with the highest interest rate that is costing you the most. Make all your required payments on all your debt obligations to preserve your credit rating, but the little extra you can come up with needs to be used strategically.

CTV's Chief Financial Commentator Pattie Lovett-Reid offers a financial tip of the day during the month of February for Your Money Month. 

CTV's Chief Financial Commentator Pattie Lovett-Reid offers a financial tip of the day during the month of February for Your Money Month.